Gold set for weekly dip with resilient US economy in focus
Fri Sep 08 2023
Gold prices firmed on Friday but were set for a weekly decline as the dollar and Treasury yields held firm with strong U.S. economic data raising concerns of the Federal Reserve keeping interest rates higher for longer.
FUNDAMENTALS
* Spot gold was up 0.2% at $1,922.87 per ounce, as of 0116 GMT, but set for a
0.8% weekly fall. U.S. gold futures rose 0.2% to $1,946.90.
* The dollar was headed for its longest weekly winning streak in nine years,
bolstered by a resilient run of U.S. economic data.
* New filings for state unemployment benefits fell unexpectedly last week to
the lowest level since February, data showed on Thursday.
* U.S. Treasury yields declined on Thursday, as a move higher following the jobs data proved to be short-lived, with investors scanning comments from a host of Fed officials.
* New York Fed President John Williams kept his options open over future U.S. interest rate policy, acknowledging falling inflation and a better balanced economy, which suggests there is no urgency for a rate rise later this month.
* Chicago Fed President Austan Goolsbee said getting the economy on the
"golden path" - where inflation falls but recession is avoided - is
possible, but not a guarantee.
* Dallas Fed President Lorie Logan said while it "could be
appropriate" to skip an interest-rate increase in September, more policy
tightening will likely be needed to get inflation down to 2% in a timely way.
* China held 69.62 million fine troy ounces of gold at the end of August, up
from 68.69 million ounces at end-July, data showed.
* Elsewhere, spot silver rose 0.2% to $23.01 per ounce and platinum gained 0.3%
to $906.14. However, both were set for their worst weeks since June 23.
* Palladium was up 0.2% at $1,214.83, but on course for its fourth consecutive
weekly fall. DATA/EVENTS (GMT) 1600 Federal Reserve issues quarterly financial
accounts of the United States